U.S. manufacturing is heading for a slowdown, according to IHS Global Insight.
Economist Michael Montgomery says right now, manufacturers are happy because so many companies are replenishing their inventories.
However, "inventories are a short-term plus," says Montgomery. "Over the long term, they don't mean very much at all."
He says it won't be slamming the brakes on. "It's sort of a midcourse correction, as opposed to a big sea change in the world," says Montgomery. "But it's enough to slow growth."
Auto manufacturing growth will also slow, but the industry will remain among the best performing in the manufacturing sector.
Manufacturing is already tepid, at best, in China, Europe, Japan, and Korea.
Montgomery says as the sector slows, so will job growth. And the U.S. dollar's strength could add to job creation woes in the U.S., because a strong dollar makes it cheaper for companies to place jobs overseas.
